Indore Civic Body to Launch Rs 244 Crore Green Bonds
INDORE: Riding on Union Budget’s Greening Goals, India’s cleanest city Indore has announced the public issue of green bonds, which will open for subscription tomorrow with a coupon rate of 8.25 percent per annum. The public issue of green bonds will be in four separate, transferable, and redeemable principal parts (STRPP) from February 10 to 14, 2023, an official communique said.
The corporation has filed an offer document for the public issue of “rated, listed, taxable, secured, redeemable, non-convertible green municipal bonds,” with a face value of Rs 1000 each.
Each bond comprises four STRPPs: “1 STRPP A with a face value of Rs 250, 1 STRPP B with a face value of Rs 250, 1 STRPP C valued at Rs 250, and 1 STRPP D worth Rs 250.
As per the inputs, these bonds with a tenure of 3, 5, 7 and 9 years. According to a corporation official, “the effective yield for the three, five, and seven years bonds is 8.41 percent, whereas, on the nine years, it is just one basis point (bps) up at 8.42 per cent.”
The issuance of bonds comes in the backdrop of a much-needed push in the Union Budget 2023 for sustainable development, making it a priority for the upcoming general elections. Budget 2023-24 announced several important measures for the energy-intensive sectors, such as agriculture, transportation, housing and infrastructure, and manufacturing.